《财务会计题库 The Financial Statements.doc》由会员分享，可在线阅读，更多相关《财务会计题库 The Financial Statements.doc（34页珍藏版）》请在三一文库上搜索。
1、Financial Accounting, 7e Harrison/Horngren Test Item File Chapter 1: The Financial Statements 1.1-1Bookkeeping is a type of accounting used primarily by proprietorships. Answer: FalseLO: 1-1Diff: 2EOC: QC 1 1.1-2The three forms of business organizations are proprietorships, partnerships, and for-pro
2、fit organizations. Answer: FalseLO: 1-1Diff: 1EOC: E1-13 1.1-3To convince an investor to invest money in a particular company, relevant and reliable accounting information is required. Answer: TrueLO: 1-1Diff: 1EOC: E1-14 1.1-4Limited Liability Companies (LLCs) have members instead of stockholders.
3、Answer: TrueLO: 1-1Diff: 1EOC: E1-13 1.1-5All business owners are personally liable for the debts of their businesses. Answer: FalseLO: 1-1Diff: 1EOC: E1-13 1.1-6A proprietorship is a distinct and separate entity from the proprietor, from both an accounting and a legal viewpoint. Answer: FalseLO: 1-
4、1Diff: 2EOC: E1-13 1.1-7The two types of accounting are: A. profit and nonprofit. B. financial and managerial. C. internal and external. D. bookkeeping and decision-oriented. Answer: BLO: 1-1Diff: 2EOC: E1-13 1.1-8According to the author, potential investors need information that is: A. relevant and
5、 reliable. B. fair and future-oriented. C. accurate and truthful. D. audited and complete. Answer: ALO: 1-1Diff: 2EOC: E1-14 1.1-9Who ultimately controls a corporation? A. Board of Directors B. The Chief Executive Officer (CEO) C. The stockholders D. The President Answer: CLO: 1-1Diff: 2EOC: E1-13 1
6、.1-10 Financial statements are: A. standard documents issued by outside consultants who are hired to analyze key operations of the business in financial terms. B. standard documents that tell us how well a business is performing and where it stands in financial terms. C. reports created by managemen
7、t that states it is responsible for the acts of the corporation. D. reports issued by outside consultants who are hired to analyze key operations of the business. Answer: BLO: 1-1 Diff: 1EOC: E1-26 1.1-11 For which form of business ownership are the owners of a business legally distinct from the bus
8、iness? A. Corporation B. Partnership C. Proprietorship D. All of the above Answer: ALO: 1-1Diff: 1EOC: E1-13 1.1-12 All of the following are forms of business organizations EXCEPT: A. proprietorship. B. limited partnership. C. limited proprietorship. D. limited liability company. Answer: CLO: 1-1Dif
9、f: 1EOC: E1-13 1.1-13 The largest organization of professional accountants in the United States is the: A. Financial Accounting Standards Board. B. Securities and Exchange Commission. C. American Institute of Certified Public Accountants. D. Auditing Standards Board. Answer: CLO: 1-1Diff: 2EOC: P1-5
10、3B 1.2-1Generally accepted accounting principles, or GAAP, are the rules and procedures established by the Financial Accounting Standards Board, or the FASB. Answer: TrueLO: 1-2Diff: 1EOC: QC 1 1.2-2The entity concept is the most basic accounting concept. Answer: TrueLO: 1-2Diff: 1EOC: S1-3 1.2-3The
11、 stable monetary unit concept means that the type of currency used for the financial statements is NOT expected to change. Answer: FalseLO: 1-2Diff: 2EOC: E1-14 1.2-4Since cost is a reliable measure to use in financial accounting, the objectivity principle states that assets and services should be r
12、ecorded at their actual cost. Answer: FalseLO: 1-2Diff: 2EOC: E1-14 1.2-5The Financial Accounting Standards Board is responsible for establishing: A. the code of professional conduct for accountants. B. the Securities and Exchange Commission. C. generally accepted accounting principles. D. the Ameri
13、can Institute of Certified Public Accountants. Answer: CLO: 1-2Diff: 2EOC: QC 1 1.2-6The acronym GAAP stands for: A. generally acceptable authorized pronouncements. B. government authorized accountant principles. C. generally accepted accounting principles. D. government audited accounting pronounce
14、ments. Answer: CLO: 1-2Diff: 2EOC: E1-27 1.2-7All of the following are characteristics of useful accounting information EXCEPT: A. informative. B. relevant. C. consistent. D. reliable. Answer: ALO: 1-2Diff: 2EOC: E1-14 1.2-8The objectivity principle of accounting: A. holds that the entity will remai
15、n in operation for the foreseeable future. B. enables accountants to ignore the effect of inflation in the accounting records. C. maintains that each organization or section of an organization stands apart from other organizations and individuals. D. ensures that accounting records and statements ar
16、e based on the most reliable data available. Answer: DLO: 1-2Diff: 2EOC: E1-14 1.2-9The stable-monetary-unit concept of accounting: A. ensures that accounting records and statements are based on the most reliable data available. B. holds that the entity will remain in operation for the foreseeable f
17、uture. c.maintains that each organization or section of an organization stands apart from other organizations and individuals. d.enables accountants to ignore the effect of inflation in the accounting records. Answer: DLO: 1-2Diff: 2EOC: E1-14 1.2-10 The going-concern concept of accounting: A. enabl
18、es accountants to ignore the effect of inflation in the accounting records. B. holds that the entity will remain in operation for the foreseeable future. c.maintains that each organization or section of an organization stands apart from other organizations and individuals. d.ensures that accounting
19、records and statements are based on the most reliable data available. Answer: BLO: 1-2Diff: 2EOC: P1-43A 1.2-11 The principle which states that assets acquired by the business should be recorded at their actual price is the: A. cost principle. B. objectivity principle. C. reliability principle. D. s
20、table dollar principle. Answer: ALO: 1-2Diff: 1EOC: Q1-30 1.2-12 The reliability principle is also called the: A. relevance concept. B. truthfulness concept. C. objectivity principle. D. full and fair principle. Answer: CLO: 1-2Diff: 2EOC: E1-14 1.2-13 Which of the following statements is FALSE? A.
21、Reliable data may be supported by objective evidence. B. The informed opinion of owners is an important source of objective evidence. C. An independent appraisal, conducted by a licensed professional, is usually considered reliable. D. Reliable data are verifiable. Answer: BLO: 1-2 Diff: 2EOC: E1-14
22、 1.2-14 The relevant measure of the value of the assets of a company that is going out of business is the: A. book value. B. current market value. C. historical cost. D. recorded value. Answer: BLO: 1-2Diff: 2EOC: P1-43A 1.2-15 The CEO of a business owns a residence in Flagstaff. The company the CEO
23、 works for owns a residence in Chandler used for strategic planning meetings by its executives. Which of these properties is considered an asset(s) of the business? A. The Flagstaff residence only B. The Chandler residence only C. Both the Flagstaff and Chandler residences D. Neither the Flagstaff n
24、or Chandler residences Answer: BLO: 1-2Diff: 2EOC: S1-3 1.2-16 An Oklahoma City business paid $15,000 cash for equipment used in the business. At the time of purchase, the equipment had a list price of $20,000. When the balance sheet was prepared, the value of the equipment later rose to $22,000. Wh
25、at is the relevant measure of the value of the equipment? A. Historical cost, $15,000 B. Fair market cost, $20,000 C. Current market cost, $22,000 D. $15,000 on the day of purchase, $22,000 on balance sheet date Answer: ALO: 1-2Diff: 2EOC: Q1-30 1.3-1The accounting equation expresses the idea that R
26、esources - Insider claims = Outsider claims. Answer: TrueLO: 1-3Diff: 3EOC: S1-5 1.3-2The accounting equation must always be in balance. Answer: TrueLO: 1-3Diff: 1EOC: S1-1 1.3-3Liabilities are divided into outsider claims and insider claims. Answer: FalseLO: 1-3Diff: 2 EOC: S1-5 1.3-4Net assets, as
27、 stockholders equity is often referred to, represents the residual amount of business assets which can be claimed by the owners. Answer: TrueLO: 1-3Diff: 2EOC: QC 12 1.3-5Common stock and retained earnings are the main components of paid-in capital. Answer: FalseLO: 1-3Diff: 2EOC: S1-10 1.3-6Retaine
28、d earnings do not represent cash that is available to a company for future operations and expansion. Answer: TrueLO: 1-3Diff: 3EOC: E1-27 1.3-7Net income appears on both the income statement and the statement of retained earnings. Answer: TrueLO: 1-3Diff: 2EOC: Q1-39 1.3-8The statement of cash flows
29、 is organized in terms of the organizations operating, investing, and financing activities. Answer: TrueLO: 1-3Diff: 2EOC: E1-25 1.3-9Expenses are increases in retained earnings that result from operations. Answer: FalseLO: 1-3Diff: 2EOC: S1-7 1.3-10 Dividend payments are NOT classified as expenses.
30、 Answer: TrueLO: 1-3Diff: 2EOC: S1-9 1.3-11 The calculation of ending retained earnings considers current net income or net loss and dividends. Answer: TrueLO: 1-3Diff: 2EOC: S1-9 1.3-12 The owners equity of proprietorships and partnerships is the same. Answer: FalseLO: 1-3Diff: 2EOC: S1-9 1.3-13 Th
31、e accounting equation can be stated as: A. Assets + Stockholders Equity = Liabilities B. Assets - Liabilities = Stockholders Equity C. Assets = Liabilities - Stockholders Equity D. Assets - Stockholders Equity + Liabilities = Zero Answer: BLO: 1-3Diff: 1EOC: QC 3 1.3-14 Which of the following best d
32、escribes a liability? Liabilities are: A. a form of paid-in capital. B. future economic benefits to which a company is entitled. C. payables of the corporation. D. economic obligations to owners to be paid at some future date by the corporation. Answer: CLO: 1-3Diff: 1EOC: S1-5 1.3-15 The owners int
33、erest in the assets of a corporation is known as: A. common stock. B. stockholders equity. C. long-term assets. D. operating expenses. Answer: BLO: 1-3Diff: 2EOC: S1-5 1.3-16 Claims held by the stockholders of a corporation are also known as: A. retained earnings. B. paid-in capital. C. paid-in capi
34、tal plus retained earnings. D. net income. Answer: CLO: 1-3Diff: 3EOC: S1-5 1.3-17 Payables are classified as: A. increases in earnings. B. decreases in earnings. C. liabilities. D. assets. Answer: CLO: 1-3Diff: 1EOC: S1-6 1.3-18 Receivables are classified as: A. increases in earnings. B. decreases
35、in earnings. C. liabilities. D. assets. Answer: DLO: 1-3Diff: 1EOC: S1-6 1.3-19 The sum of outsider claims plus insider claims equals: A. net income. B. total liabilities. C. total assets. D. total stockholders equity. Answer: CLO: 1-3Diff: 3EOC: S1-5 1.3-20 Revenues are: A. decreases in assets resu
36、lting from delivering goods or services to customers. B. increases in liabilities resulting from delivering goods or services to customers. C. increases in retained earnings resulting from delivering goods or services to customers. D. decreases in retained earnings resulting from delivering goods or
37、 services to customers. Answer: CLO: 1-3Diff: 2EOC: S1-4 1.3-21 How do revenues for a period relate to the beginning and ending balances in retained earnings? A. Revenues will increase the beginning balance of retained earnings for the period. B. Revenues will increase the ending balance of retained
38、 earnings for the period. C. Revenues less expenses will either increase or decrease the beginning balance of retained earnings for the period. D. None of these answers are correct. Answer: CLO: 1-3Diff: 2EOC: S1-9 1.3-22 Expenses are: A. increases in liabilities resulting from purchasing assets. B.
39、 increases in assets resulting from operations. C. increases in retained earnings resulting from operations. D. decreases in retained earnings resulting from operations. Answer: DLO: 1-3Diff: 2EOC: S1-4 1.3-23 Dividends: A. are expenses. B. always affect net income. C. are distributions to stockhold
40、ers of assets (usually cash) generated by net income. D. are distributions to stockholders of assets (usually cash) generated by a favorable balance in retained earnings. Answer: CLO: 1-3Diff: 2EOC: E1-16 1.3-24 A corporations paid-in capital consists of A. revenues and expenses. B. assets and liabi
41、lities. C. common stock. D. net income. Answer: CLO: 1-3Diff: 2EOC: S1-10 1.3-25 Net income is computed as: A. revenues expenses dividends. B. revenues + expenses. C. revenues expenses. D. revenues expenses + dividends. Answer: CLO: 1-3Diff: 2EOC: QC 8 1.3-26 Which of the following must be added to
42、beginning Retained Earnings to compute ending Retained Earnings? A. Net income B. Expenses C. Dividends D. All of these answers are correct. Answer: ALO: 1-3Diff: 2EOC: P1-44A 1.3-27 At the end of the current accounting period, account balances were as follows: Cash, $180,000; Accounts Receivable, $
43、75,000; Common Stock, $20,000; Retained Earnings, $65,000. Liabilities for the period were: A. $ 70,000. B. $170,000. C. $190,000. D. $210,000. Answer: BLO: 1-3Diff: 2EOC: S1-1 1.3-28 On January 1, 2009, total assets for Liftoff Technologies were $125,000; on December 31, 2009, total assets were $14
44、5,000. On January 1, 2009, total liabilities were $110,000; on December 31, 2009, total liabilities were $115,000. What is the amount of the change and the direction of the change in Liftoff Technologies stockholders equity for 2009? A. Decrease of $15,000 B. Increase of $15,000 C. Increase of $30,0
45、00 D. Decrease of $30,000 Answer: BLO: 1-3Diff: 2EOC: QC 12 1.3-29 Revenues were $170,000, expenses were $90,000, and cash dividends were $30,000. What was the net income and the change in retained earnings for the period? A.Net income was $50,000; change in retained earnings was $50,000 B. Net inco
46、me was $80,000; change in retained earnings was $50,000 C. Net income was $80,000; change in retained earnings was $80,000 D. Net income was $250,000; change in retained earnings was $250,000 Answer: BLO: 1-3Diff: 2EOC: E1-23 1.3-30 At the beginning of the period, assets were $490,000 and stockholde
47、rs equity was $240,000. During the year, assets increased by $60,000, liabilities increased by $40,000, and stockholders equity increased by $20,000. Beginning liabilities must have been: A. $230,000. B. $250,000. C. $280,000. D. $300,000. Answer: BLO: 1-3Diff: 3EOC: S1-1 1.3-31 If assets increase $
48、210,000 during a given period and liabilities increase $65,000 during the same period, stockholders equity must: A. increase $145,000. B. decrease $275,000. C. decrease $145,000. D. increase $275,000. Answer: ALO: 1-3Diff: 3EOC: P1-44A 1.3-32 If liabilities increase $120,000 during a given period an
49、d stockholders equity decreases $25,000 during the same period, assets must: A. increase $95,000. B. decrease $95,000. C. decrease $145,000. D. increase $145,000. Answer: ALO: 1-3Diff: 3EOC: P1-44A 1.3-33 Stockholders equity for Commerce-GA Corporation on 01/01/2008 and 12/31/2008 were $60,000 and $75,000, respectively. Assets on 01/01/2008 and 12/31/2008 were $115,000 and $105,000, respectively. Liabilities on 01/01/2008 were $55,000. What is the amount of liabilities on 12/31/2008? A. $40,000 B. $15,000 C. $30,000 D. The amount is indeterminable from the give